Mortgage

Consumer watchdog to roll out e-closings pilot project

Consumers frustrated with lack of time to review stacks of paperwork, jargon-filled documents
Published on Apr 29, 2014 | Updated on Jun 4, 2014

Closing on a mortgage can be a frustrating, overwhelming and sometimes baffling process for consumers. That's why the federal Consumer Financial Protection Bureau has decided to launch a pilot project in which it will evaluate whether electronic closings can help consumers navigate the process better.The bureau has released guidelines for the project along with a report detailing borrower challenges during the mortgage closing process. The top three "pain points" noted in the report were: not having enough time to review closing documents; an overwhelming stack of paperwork; and documents that were full of terms they could not understand or contained errors.A new rule that will go into effect in August 2015 requiring the use of new, simplified mortgage disclosure forms will address at least one of these concerns: Consumers will receiveĀ a Closing Disclosure form at least three business days before their closing date."Mortgage closings are often fraught with anxiety," said C...

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